News

'Pensions liberation' company on brink of insolvency 23 May 2013

A company which offers to unlock pensions for a fee – is on the brink of a formal insolvency arrangement.

Freedom Capital Partners Limited is poised to enter a Company Voluntary Liquidation (CVL) on 11 June, subject to a creditors meeting, Insolvency News can reveal.

Freedom Capital Partners has been the subject of significant press interest following allegations of high transfer fees for permitting pension scheme holders early access to their fund.

Taking money from a pension before age of 55 remains subject to a tax charge of 55% as it is deemed an ‘unauthorised payment’.

Today, a spokesman for insolvency firm CMB Partnership confirmed it is preparing documents with a view to a CVL being passed at the meeting of creditors at 23 Ely Place, London on 11 June.

The news comes just days after the City of London police announced that it had arrested three people and seized computers and documents from a call centre in relation to pension liberation activity. Police Scotland and SOCA also confirmed two arrests in Ayr and Glasgow.

The City of London police has said it will not release the names of those involved unless they are charged. There is no suggestion that these arrests are connected to this proposed insolvency.

According to records held at Companies House, the current director of Freedom Capital Partners Ltd – Mr Derek John Young – registered his details from an address in Lanarkshire, Scotland. He became a registered director on 25 October 2012.

Previous directors of the company until October include Mr Ronald Bramley, aged 64, who is also a director of Ardent Capital Limited and a 61-year old Julian Nene Spencer.

The company was first incorporated almost a year ago to the day – on 21 May 2012.

On the subject of pension liberation activity more generally, pensions minister Steve Webb, warned earlier this month that the government was cracking down on pension liberation companies.

He said: “The promise of easy money when times are tough is all too tempting and there are far too many unscrupulous people who will play upon this.”